Robinhood upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Robinhood (HOOD) to Overweight from Equal Weight with a price target of $55, up from $24. The company’s revenue growth looks stronger post the election, boosted by more sustained retail trading as support for crypto broadens, acquisitions open up, and “animal spirits revive,” the analyst tells investors in a research note. The firm says Robinhood is “clearly executing” on plans to broaden its offerings to capture more wallet share and expand its total addressable market, notably in the recently announced acquisition of a registered investment advisor custody platform. While the shares are up over 100% this year, Morgan Stanley sees “more room to run” given Robinhood’s “discounted valuation,” expanding pace of new initiatives and animal spirits post election that it thinks will likely continue into 2025.